WASHINGTON (dpa-AFX) - Crude oil posted incremental gains on Wednesday as traders assessed U.S. President Donald Trump's speech at the World Economic Forum, where he sought negotiations on the U.S. bid to acquire Greenland. However, Trump said he would not use military force in his pursuit.
WTI Crude Oil for March delivery was last seen trading up by $0.10 (or 0.17%) at $60.46 per barrel.
Trump's controversial bid to acquire ownership of Greenland, a semi-autonomous territory in the Arctic currently owned by Denmark, has moved to the next level, uniting several European leaders in support of Denmark.
As Trump threatened eight EU nations with 10% tariffs if they fail to support the U.S., a few European nations threatened to sell U.S. assets in retaliation, sending the U.S. dollar value down and oil prices up as renewed tariff threats from the U.S. added to the economic uncertainty.
A rift between the U.S. and EU could widen the trade gap between the two blocs and weaken global demand for oil.
As markets awaited further developments, Trump today delivered his keynote address at the World Economic Forum in Davos, Switzerland.
In his special address, asserting only the U.S. can secure the Arctic region, Trump pushed his bid for taking control of Greenland and sought immediate negotiations on the matter, indicating the U.S. will not give up on this issue. However, Trump reassured that he would not use force to capture the island and also reaffirmed that the U.S. would not be a threat to NATO, allaying concerns of an intense U.S.-EU conflict.
Experts dismiss the chances of oil extraction in the largely ice-covered nation though they agree that the strategic High North location holds critical importance to U.S. dominance in the Arctic region.
Earlier this month, Trump forcibly ousted Venezuelan President Nicolas Maduro from power and took control of the Venezuelan oil industry. Though Trump motivated oil majors to invest heavily in Venezuela for the benefit of the U.S., corporations are weighing the advantages and disadvantages before investing billions of dollars. In the short-term, supplies from Venezuela remain disrupted.
After weeks of widespread civil unrest against the ruling clerical regime which was cracked down by the authority, the situation in Iran is peaceful now. Concerns of disruption to oil production in Iran as well as transit in the Middle East currently stand abated.
The International Energy Agency stated that the global oil market will be faced with a strong surplus in the first quarter of 2026.
Raising the demand growth forecast to 930,000 barrels per day, the IEA added that oil supply would override demand by 4.25 million bpd (nearly 4% of global demand) through the first quarter 2026.
The agency pointed to 'bloated balances' as a vital factor that weighs on prices.
The U.S. Energy Information Administration is set to release its Weekly Petroleum Status Report on January 22, the delay being due to Monday's federal holiday.
Tengizchevroil, the Chevron-led operator of Kazakhstan's (an OPEC member) Tengiz and Korolev oilfields announced halting production due to a power outage issue that erupted on Sunday. Hence, exports via Caspian Pipeline Consortium stands disrupted.
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